Retail honcho, Kishore Biyani’s Future Group has acquired retail group chain Sangam Direct from Wadhawan Holding, a company owned by the promoters of Dewan Housing Finance Corp Ltd.
To consolidate its position as the country’s largest producer, Future Group is on a buying spree. This is Future Group’s third acquisition in northern India in the food and groceries space in the last three years after Big Apple and EasyDay.
In the south, the company acquired Nilgiris in 2015 and is in talks to buy the retail business of Heritage Foods Ltd. Sangam Direct and Heritage Foods is expected to add Rs 800 crore to Future Group’s annual revenue.
Sangam Direct, which has 30-35 stores across Delhi and Bengaluru, was started by Hindustan Unilever Ltd in 2001 as its online groceries delivery platform. It was acquired in 2007 by the Wadhawan group, which owned the Spinach retail chain.
At present, Future Group, through Future Retail Ltd and Future Consumer Enterprise Ltd, operates about 800 stores with about 14 million sq. ft of space across brands. Of these, around 500 are small format EasyDay and Nilgiris convenience stores and the rest are the larger format stores of Big Bazaar and FBB, which is the group’s fashion retail offering. Future Consumer Enterprise also runs 5,000 Annapurna Bhandars in partnership with the government of Rajasthan.
This is Future Group’s third acquisition in northern India in the food and groceries space in the last three years after Big Apple and EasyDay
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